MANILA, Philippines — State-run Power Sector Assets and Liabilities Management Corp. (PSALM) is waiting for the inputs of the incoming administration for the privatization of Casecnan hydroelectric power plant (HEPP), which is targeted to start in the second half.
In a Viber message to The STAR, PSALM president and CEO Irene Joy Besido-Garcia said the timetable and commencement of Casecnan’s privatization is targeted in July, pending the inputs of the new PSALM board.
“It’s tabled for commencement but then we expect new people in the PSALM board this July so there will be discussions and perhaps new inputs and directions coming from new people in the board,” she said.
Discussions between the PSALM board and management would not only be strictly about the commencement of Casecnan’s privatization, Besido-Garcia said.
The PSALM board is chaired by the finance secretary, who is currently Bangko Sentral ng Pilipinas Governor Benjamin Diokno.
Meanwhile, ex officio members of the board include the secretaries of Energy, Budget and Management, Socio-Economic Planning, Justice, and Trade and Industry and the PSALM president.
Incoming Budget and Management secretary is DBM Undersecretary Amenah Pangandaman, incoming National Economic and Development Authority (NEDA) secretary is Arsenio Balisacan, incoming Justice secretary is Cavite representative Jesus Crispin Remulla, and incoming Trade secretary is former Management Association of the Philippines (MAP) president Alfredo Pascual.
While PSALM has its own board of directors and set of corporate officers, it reports to the Department of Energy (DOE) which directly supervises all energy related programs, projects and activities, including the restructuring of the electricity industry.
Meanwhile, president-elect Ferdinand Marcos Jr. has yet to name his Energy secretary.
In the updated Power Development Plan (PDP) 2020-2040 of the DOE, a study on the options and appropriate privatization structure of the Caliraya-Botocan-Kalayaan (CBK) and Casecnan HEPP scheduled for completion last year.
Meanwhile, the PDP also said the sale and turnover of CBK and Casecnan HEPP to the winning bidder were set in May.
In addition, the start of sale activities and turnover to the winning bidder of the Mindanao Coal-Fired Thermal Power Plant was also targeted this year.
“Casecnan will go ahead of the Mindanao coal plant,” Besido-Garcia said.
On its website, the sale of CBK HEPP is set this year with turnover targeted next year while the Mindanao coal plant is scheduled for privatization next year with turnover set in 2024.
The CBK-HEPP in Majayjay and Kalayaan, Laguna is currently under an IPP administrator (IPPA) contract with CBK Power Company Ltd. until February 7, 2026.